Answer:
see below
Explanation:
The government takes contractionary measures to check against rising inflation. Contractionary policies reduce liquidity in the market, thereby reducing the rate of money circulation.
<u> Four measures that may control inflation include</u>
1<u>. Increasing interest rates</u>: An increase in interest rates increases the cost of borrowing money. When the cost of money becomes expensive, firms and households reduce the borrowing rate, reducing the money supply rate. In turn, the inflation rate declines.
2. <u>Increasing reserve requirement:</u> Reserve is the proposition of customer discounts that commercial banks are expected to maintain at their custody at all times. Increasing the reserve requirement means banks will reduce lending, thereby reducing the money supply in the economy.
3. <u>The open market sells</u>: The government makes available many treasury bills and bonds for purchase in the market. It offers attractive rates that encourage banks and other institutions to buy them. Buying the treasury bills means banks will use a substantial percentage of customer deposits on treasury bills other than lending to customers. Open market sales mop up excess liquidity in the markets, reducing the rate of cash circulation.
4. <u>Reduction of government spending:</u> Government spending is a fiscal policy tool. The government is a big spender in an economy. If the level of spending is decreased, the money supply in the economy is reduced.
Answer:
The correct answer to the following question is option E) 9.06% .
Explanation:
Here the cost of equity given is - 11.8%
Pre tax cost of debt- 6.9%
Tax rate- 35%
So the after tax cost of debt - 6.9% x 65%
= 4.485%
The debt to equity ratio - .6
So the weight of debt - .6 / ( 1 + .06 )
= .375
Weight of equity - 1 / ( 1 + .06 )
= .625
Weighted average cost of capital =
Debts cost x weight of debt + Equity cost x weight of equity
= 4.485 x .375 + 11.8 x .625
= 1.681875 + 7.735
= 9.06%
Swot stands for
strengths
weaknesses
opportunities
threats
Answer:
real estate agent who leaves a job in Texas and searches for a similar, higher paying job in California
Explanation:
Frictional unemployment occurs when Labour leaves his job in search of another one. It is the period between Labour leaves current employment and get another one.
geologist who is permanently laid off from an oil company due to a new technological advance is an example of structural unemployment
worker at a fast-food restaurant who quits work and attends college is am example of voluntary unemployment.
autoworker who is temporarily laid off because of a decline in sales is an example of cyclical unemployment.
I hope my answer helps you
Answer: $23.57
Explanation:
We are going to use growth dividend discount model to solve the question where Do = Div/r - g
where Po = stock price
Div = Estimated dividend for following period
r = required rae of return
g = growth rate
Po = 3.10/0.15 - 0.0185
= $23.57
